Susquehanna Maintains a 'Positive' Rating on Casual Male (CMRG); Raises Price Target & Estimates

May 22, 2009 8:41 AM EDT

Susquehanna maintains a 'Positive' rating on Casual Male (Nasdaq: CMRG), raises price target from $1.50 to $3.00.

Susquehanna analyst says, "CMRG posted an upside 1Q09 earnings surprise, delivering EPS roughly in-line with last year at $0.01, despite a sales drop of 10%. The quarter upside was driven by defensive positioning with a reduction in operating expenses of 14% and well managed inventories down 15% at quarter end. More important, management provided a significantly higher operating outlook for 2009, inclusive of a greater decline in SG&A expenses, an improved view of merchandise margins and free cash flow, as well as a reduction in bank debt. Based on the more favorable operating outlook and better than expected 1Q09 results, we are raising our 2009 EPS projection by $0.15 to $0.10 vs. $(0.12)...In addition, management is maintaining its course of rebalancing its inventory concentration at Rochester, offering lower opening price point product in an effort to reverse the downward trend in same-store sales."

To see more analyst ratings on CMRG Click Here.

Casual Male Retail Group, Inc. is a specialty retailer of big and tall men's apparel with retail operations in the United States and London, England and direct businesses throughout the United States, Canada and Europe.

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• Susquehanna International Group of Companies

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